The Forex market seems to be one of the hottest markets right now.
Let’s take a look at why.
It takes a small amount of capital to get going and you get leverage with it.
This is important because a lot of people entering the market are looking for ways to make money and not just to invest their spare cash.
Leverage means that you can use other people’s money to make your investment bigger. Not to try to scare you but this also introduces a greater chance for Loss. This is not for the faint-hearted or people not willing to learn how to trade, understand their trading psychology, and follow money management rules. Having been duly warned please keep reading about the great potential and positive aspects of Forex trading.
Leverage is a very powerful tool to make money very quickly.
The Forex Market is the largest in the world worth more than a trillion dollars a day. This is important for many reasons:
It provides amazing liquidity. There are always people ready to buy and sell so you can always enter and exit your position easily. Smaller markets may not always give you the ability to exit your trade so easily.
It is difficult for larger players to influence the market. In the stock market, the larger players can influence a particular stock and cause movement just by their trades.
The sun is always shining somewhere.
There is always trading going on 24 hours a day Monday to Friday. It goes from city to city following the sun. Plus you still get your weekends to relax. With stocks, the markets close, and the news is released and the stock can gap at the open leaving you in a worse position. When you can trade a very liquid market open 24 Hours it makes it a lot easier to manage your positions and relax.
You are trading so that you can have a better life, right? Not just stuck in front of a computer. It is important to get clear on why you are trading or you can just be swapping one situation for another and not really improving your life. Pep talk over with let’s get on with it.
Stocks may go in sideways movements and suddenly rush up or down and there are a lot of stocks to choose from. Sure there are some stocks renowned for being volatile but it is easier to find consistent volatility in the Forex market. The market is always moving so there are always plenty of opportunities for day trading.
So I obviously think that the Forex Market provides a great opportunity for people to enrich their lives. It gives people willing to learn a little about a great lifestyle that many will envy.
I hope that you enjoyed that simple summary. There are many more great reasons to trade forex.